Crude oil prices surge 3% on heightened supply fear following Libyan production cutsThe situation in Libya exacerbates existing concerns over stability in the Middle East, a region already fraught with conflict. Reports of rising tensions in the area further fueled fears of supply constraints, contributing to the market’s bullish response. |
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Global crude oil prices surged more than 3% on Monday, driven by escalating concerns over supply disruptions. The Libyan government announced a halt to all oil production and exports amid a deepening political struggle for control of the country’s central bank. The declaration of “force majeure” applies to all oil fields, terminals, and facilities, effectively cutting off significant supplies from the global market.
The situation in Libya exacerbates existing concerns over stability in the Middle East, a region already fraught with conflict. Reports of rising tensions in the area further fueled fears of supply constraints, contributing to the market’s bullish response.
Brent crude futures climbed $2.41, or 3.05%, to close at $81.43/barrel.
WTI jumped $2.59, or 3.5%, settling at $77.42/barrel.